Basics of Salesforce CPQ

What is Salesforce CPQ?

CPQ stands for configure, price, and quote.

A quality quote is the end product of Salesforce CPQ.

Using Salesforce CPQ, you can choose products smartly, configure its price (You just need to set the percent discount, CPQ with do the math) and generate a nice pdf for your customer quickly and accurately.

 

Product Selection using CPQ?

Salesforce CPQ simplifies product selection.

You can choose products from the list of products. You can filter out the products. Your admin can group products into categories for easy product selection.

You can use guided selling process from the Salesforce CPQ to select the products that meets your business requirement.

Sometimes there is requirement to sell products in combination, we call it bundle in Salesforce CPQ. Sales Admin can configure bundles which prevents sales rep choosing the wrong product combination.

 

Pricing using Salesforce CPQ?

You don’t have to calculate the price manually. Salesforce CPQ do it automatically.

Salesforce CPQ do that math to calculate prices automatically but you have to configure which price to use. There are several CPQ pricing methods-

• Standard Salesforce Pricebook
• Contracted Pricing
• Unit cost for a product
• Cost Plus Markup
• Block Price Method

You can use discount schedules to handle tiered discounts for volume-­­based pricings and also apply the same to subscription-based products to discount them based on the overall subscription term.

 

What is Quote?

In Salesforce CPQ term, Quote can be electronic record or PDF document created from the record.

You need to add Quote, then choose products to make the quote complete. Also, you can add as many quotes as you want.  You can also use quote to negotiate with customer.

There can be only one primary quote. Total amount field on quote is reflected on the Opportunity’s Amount field and products from this quote is reflected on product related list on opportunity.

Using Salesforce CPQ, you can generate a perfect quote which have everything there which is important to customers which includes price break up of products and discounts. It includes all important terms & conditions also which is automatically added if any. You can add digital signature to the quote for get it signed electronically for faster sales cycle.

Salesforce CPQ can display several pieces of information about your quote dynamically, quickly and easily, in a pdf document. This document is stored on the quote as well on the opportunity. You can even email that document to your customer.  

 

Renewal Process

For the subscription-based product, there is a contract for certain period of time. When the contract ends, renewal process begins. Usually will have to create a new renewal opportunity to create a quote but Salesforce CPQ automates this to create contract and quote seamlessly.

Salesforce CPQ creates renewal opportunity and the quote before the contract ends. It also automatically adds subscription products. You can also automate final quotes by adding products from existing quote. You can also add/remove products to modify this quote.